Background looks stretched - what gives?

I shot my project on a panasonic hvx 200, using 960 x 720pn. For my home menu page on the DVD, I made a small video and set is as the background on my DVD project. When I'm looking at the DVD video, the image appears "Stretched" even though it's settings are 960 x 720.

Is this because I shot HD and downgraded to SD?

It looks fine when you click on the buttons and see the actual project(s). It's really just the main menu page which looks awkward. Any one have any suggestions on how to fix this? Anyone know what settings I should try?

Thank you.


PS, if it matters, the DVD contains a feature film (90 min), trailer (2 min), behind the scenes (5 min), deleted scenes (8 min).

fcp 70.2, os 10.6.3, dvd studio 4.2.2

SD DVD is 720x480. HD-DVD is dead. These are the only two options in DSP.

If you imported a video at another size(not created in Compressor's DVD presets) the application has to make it 720x480. Was the menu set to 16x9? What about your encode preferences?

You could try creating a 16x9 version of the movie for your menu in Compressor. This should prevent the video from being stretched.